- Following a live investor demonstration earlier this year, KWESST is producing LEC systems for personal protection and law enforcement
- The company reported that its pipeline of sales opportunities for ATAK integration services stands at more than $40M
- KWESST received notification from ISC that it has qualified for up to $1.5M in funding
- The company is reporting growing interest in its PhantomTM electronic decoy following a successful demonstration to U.S. Special Operations Command in June
- KWESST has upgraded the GreyGhost ® counter-drone system to deal with next-generation drone threats
- KWESST is in discussions with several global defense sub-contractors, which is expected to result in announcements in the coming weeks and months
- KWESST develops intelligent tactical systems for military applications
- KWESST Micro Systems Inc. (KWE) is down 3.02 per cent, trading at C$1.93 per share at 2:15 pm ET
KWESST Micro Systems (KWE) has provided a corporate update to investors.
“We continue to make quiet but steady progress against our plan on all fronts,” said Jeff MacLeod, KWESST Founder, President and CEO, who reported on the company’s various product areas.
Non-lethal Low Energy Cartridge (LEC) system
“Regarding our non-lethal Low Energy Cartridge (LEC) system we are currently producing units which will be used as demonstration samples following the successful investor demonstration in British Columbia on July 9th of this year. The first, high-priority versions are for personal protection and law enforcement, to be available later this year and followed by an official commercial launch at the 2022 SHOT Show in Las Vegas on January 18-23,” Jeff added.
Android Team Awareness Kit (ATAK) integration services
The company reported that its pipeline of sales opportunities for ATAK integration services stands at more than $40M and growing.
“These opportunities are with major end-users in NATO countries and with Tier 1 and Tier 2 global defense contractors,” said Jeff.
“We expect these to result in initial contracts and teaming agreements starting in Q1 of Fiscal 2022, with more to follow through 2022 and extending to 2023, 2024 and beyond.”
Innovation Solutions Canada (ISC)
As announced on August 5th, KWESST received notification from ISC that it has qualified for up to $1.5M in non-dilutive funding to advance its counter-UAS technology, its PhantomTM electronic decoy and its Tactical Awareness and Situational Control System (TASCS) Indirect Fire Module (IFM) system currently under contract with a key U.S. military customer.
“The last phase of our current TASCS IFM contract for this U.S. military customer is scheduled for completion this October,” said MacLeod, who added, “We are currently in discussions with this customer regarding next phases of procurement. We are also submitting proposals to other NATO customers with similar requirements.”
PhantomTM electronic decoy
The company remarked that it is seeing accelerated interest in its PhantomTM electronic decoy following a successful demonstration to U.S. Special Operations Command (USSOCOM) in June of this year and is currently producing upgraded units to be used as demonstration samples in response to other U.S. Department of Defense (“DoD”) requests for trials and potential initial procurement before the end of calendar 2021. The company continues to develop ever-stronger IP around this technology and recently received yet another U.S. patent, this one covering methods of employment in addition to previous patents covering the technology itself.
GreyGhost ® counter-drone
KWESST is also working with DoD and another NATO country on upgraded capability for the GreyGhost ® counter-drone system to deal with next-generation drone threats and has commenced engagement with major defense contractors on potential partnerships.
Partnerships
“It is a key part of our go-to-market plan to partner with global defense prime and major sub-contractors,” said Jeff MacLeod, “We announced a handful of such partnerships early on. The past few months have been especially active in progressing discussions with several others on all fronts, which is expected to result in announcements in the coming weeks and months.”
Attendance at trade shows
The international defense market has seen relaxed COVID-19 restrictions with the re-opening of major trade shows and events.
“We attended IDEX, the premier Middle East event in Abu Dhabi this past February and announced the appointment of Bin Hilal Enterprises, LLC as our representative in the key Middle East market of the United Arab Emirates,” said MacLeod.
“We will also be exhibiting at the reopening of DSEI, the major European defense show in London, UK, this September, as well as the Modern-Day Marine show, also in September, and AUSA, the major annual U.S. Army event in Washington DC in October.”
Other
On August 24, 2021, the Company’s Board of Directors granted 546,000 incentive stock options to officers, employees, and a consultant. The exercise price for the Options will be the closing price of the Company’s shares on the TSXV on August 25, 2021, and will vest semi-annually from the date of the grant and will expire on August 24, 2026. Following the end of the quarter, the company was notified by the lead agent of its April 2021 private placement that a subscription for 40,000 units had been omitted from the closing. Following TSX-V approval, KWESST accepted this subscription.
KWESST develops and commercializes high-value ultra-miniaturized technology applications that make a critical difference to the safety and operational effectiveness of personnel in the defence and security industries.
KWESST Micro Systems Inc. (KWE) is down 3.02 per cent, trading at C$1.93 per share at 2:15 pm ET.
